Investment Opportunities In Myanmar’s Tourism Industry Presentation by: Ms. Thida Aung Assistant Director Directorate of Hotels and Tourism Ministry of Hotels & Tourism, Building No.33, Nay Pyi Taw, The Republic of the Union of Myanmar. Tel and Fax: 95 67 406249, 406104 E-mail: [email protected]Website: www.tourism.gov.mm
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Investment Opportunities In Myanmar’s Tourism Industry 1. Background of Myanmar 2. Tourism Situation in Myanmar 3. Law, Rules and Notifications 4. Foreign Investment in Hotels and
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Investment Opportunities In Myanmar’s Tourism Industry
Presentation by:
Ms. Thida AungAssistant DirectorDirectorate of Hotels and TourismMinistry of Hotels & Tourism, Building No.33, Nay Pyi Taw,
The Republic of the Union of Myanmar.Tel and Fax: 95 67 406249, 406104
TOTAL 2,044,307 3,081,412 4,681,020 2,907,207 2,522154
GROWTH 93% 51% 52% -38% 21%
Hotel Apartment Rooms
Local Investment 1486 54595
Foreign Investment 27 4842
State Own Hotel(Lease Out)
21 968
J.V 6 1137
Total 1540 61542
Hotels, Motels and Lodging-House Business Licenses (Up to Sep, 2017)
Inbound Outbound
Foreign Company 1
J.V Company 41
Local Company 2628 429
Total 2670 429
Tour Operation Enterprise Licenses(Up to Sep, 2017)
Tourist Transport Business Licenses (Up to Sep, 2017)
Coach 1164
Boat/Motor Boat 1307
Hot Air Balloon 3
Yacht 16
Total 2490
Licensed Tour Guide 4266
Regional Guide 3348
Total 7614
Tour Guide Business Licenses (Up to Sep, 2017)
Myanmar Hotels and Tourism Law
Myanmar Tourism Law (New)
• Undergoing reform• 2016
Myanmar Hotel and Tourism Law (1993)
Myanmar Tourism Policies Commitments
Responsible Tourism Policy
• 2012
Policy on Community Involvement in Tourism
• 2012
Myanmar Tourism Master Plan
• 2013
Myanmar Ecotourism Policy and Management Strategy
• 2015
POLICY AND PLAN DEVELOPMENT Policies Commitments
Master PlanResponsible Tourism
Community Involvement in
Tourism
Ecotourism Policy &
Management Strategy
Related Procedures and Orders
Procedures relating to the Myanmar Tourism Law
Order For Licensing of Hotel and Lodging-House Business(2011)
Order For Licensing of Tour Operation Enterprise (2011)
Order Relating to Licensing of Tour Guide Business (2011)
Order Relating to Licensing to Tourist Transport Business(2011)
Related Procedures and Orders
Myanmar Investment Commission Notification No. 13/2017 (1st April 2017)
In exercise of the power conferred under section 43 and sub-section 100 of the Myanmar Investment Law, the Myanmar
Investment Commission has prescribed the investment promoted sectors with the approval of Union Government
Classification of Promoted Sectors
1. Providing services by construction of hotels and resorts (ISIC 55102)
2. Transport services for tourists and sight-seeing(ISIC 5011)
3. Eco-tourism business (ISIC 50111)
Foreign Investment of Permitted Enterprises as of (30/9/2017) (By MIC)
FOREIGN INVESTMENT OF PERMITTED ENTERPRISES AS OF (31/8/2017)
(BY SECTOR)
( US $ in million )
Sr . No.
ParticularsPermitted Enterprises
No. ApprovedAmount
%
1 Oil and Gas 154 22410.368 30.09%2 Power 14 20711.446 27.81%3 Manufacturing 811 9210.362 12.35%
4Transport & Communication 52 8578.127 11.52%
5 Real Estate 48 4816.508 6.47%
6 Hotel and Tourism 71 3004.448 4.03%7 Mining 71 2897.606 3.89%8 Livestock & Fisheries 44 574.175 0.77%
9 Agriculture 23 380.073 0.51%10 Industrial Estate 4 208.444 0.28%11 Construction 2 37.767 0.05%12 Other Services 84 1658.008 2.23%
Total 1378 74487.332 100.00%
FOREIGN INVESTMENT OF EXISTING ENTERPRISES AS OF 30/9/2017( By MIC )
( US $ in million )
Sr . No.
ParticularsExisting Enterprises
No. ApprovedAmount
%
1 Oil and Gas 96 21486.951 33.78%
2 Power 13 14681.446 23.08%
3 Transport & Communication 43 8401.897 13.21%
4 Manufacturing 713 7746.157 12.18%
5 Real Estate 34 3779.005 5.94%
6 Hotel and Tourism 53 2658.416 4.18%
7 Mining 10 2352.624 3.70%
8 Agriculture 20 351.392 0.55%
9 Livestock & Fisheries 26 314.763 0.49%
10 Industrial Estate 3 194.444 0.31%
11 Other Services 82 1641.383 2.58%
Total 1093 63608.478 100.00%
Permitted FDI Hotels by MoHT (Up to Sep, 2017)
FOREIGN INVESTMENT IN HOTELS AND COMMERCIAL COMPLEX
Sir. Projects Rooms Investment US$(m) Remarks
1. 32 6241 1749.9920 Completed
2. 11 2296 993.4454 Under Construction
3. 20 3657 1627.5280 MIC Permitted
63 12194 4370.9654 Total
Foreign Investment in Hotels and Commercial Complex
Sr. CountryNumber of
ProjectInvestment
(USD in million)Remark
1. Singapore 31 2719.8834
2. Thailand 12 486.1610
3. Vietnam 1 440.0000
4. Japan 6 394.3850
5. Hong Kong 5 187.7000
6. Korea 1 100.00007. Malaysia 3 23.1360
8. United Kingdom 3 14.5000
9. Luxembourg 1 5.2000
Total 63 4370.9654
Foreign Investment In Hotels and Commercial Complex (Up to Sep,2017)
26
Governor’s Residence (Pansea)
The Strand Hotel
Foreign Investment Hotels (Yangon)
27
Summit Parkview
Park Royal Yangon
Foreign Investment Hotels (Yangon)
28Inya Lake Hotel
Chatrium Hotel
Foreign Investment Hotels (Yangon)
Foreign Investment Hotels (Yangon)
Park Royal Sedona
Sule Shangri-la
Meliá Yangon (HAGL )
Sedona Hotel
Mandalay Hill Resort
Foreign Investment Hotels (Mandalay)
30
Thiripyitsaya Sakura Hotel
Foreign Investment Hotels (Bagan)
Procedures / Salient Points for FDI in Hotels and Related Businesses
100% foreign owned BOT System.
Hotel Business can be done in JV with Government Organizations/ local citizens
Land Lease Period: Initial (50)yrs + extendable (10) yrs x (2) times withMIC’s permission
Construction Period: (2) to (3) yrs for phase 1(2) to (3) phases
Land Use Premium: Depends on Location and Area of Land
Annual Land Lease Rental Fee: (5)% of Gross Income (or) MinimumGuarantee Payment whichever is higher.
Procedures /salient points for FDI in Hotels and Related Businesses
After having the agreement between the investor andgovernment organization (or) private sector on the termsand conditions, the both sides have to draft B.O.T Contractand Lease Agreement.
The draft BOT Contract- To be submitted to the UnionAttorney General’s Office for legal advice.
Need to submit proposal of the promoter to make foreigninvestment in Myanmar to MIC with the draft B.O.TContract, Lease Agreement and other required documents.
Procedures /salient points for FDI in Hotels and Related Businesses
After having the Permission of Myanmar InvestmentCommission (MIC) , the BOT Contract andLease Agreement shall be signed by the both parties.
Apply for prior permission to establish Hotel Businessfrom Ministry of Hotels and Tourism.
Implement the construction of project.
Obtain the license to operate the hotel business.
Tourism Business ( Tour Operator and Travel Agency)
Allow under the Joint Venture system
60% (Foreign)+40%(Local) if it is JV
Require to make registration of foreign company
incorporation at the Directorate of Investment and
Company Administration(DICA).
Require to obtain the license to operate the business
from Directorate of Hotels and Tourism(DHT)
Schedule of Specific Commitments under ASEAN Framework Agreement on Services (AFAS)
• Hotel and Restaurant Services
• Travel Agencies and Tour Operators Services
• Recreational, Cultural and Sporting Services
Service Liberalization of Myanmar
• Promotion of further liberalization of ASEAN Services,
Myanmar has already liberalized the tourism and travel
related services apart from Tourist Guide Services (CPC 7472)
Which is under Travel Agencies and Tour Operator Services up
to 9th Package in order to integrate into the ASEAN Economic
Community
Service Liberalization of Myanmar
No additional Sector or Sub – Sector that could be further
liberalized for the 10th Package because it is difficult to agree
Contact InformationBuilding No 33, Ministry of Hotels and Tourism, Nay Pyi Taw,The Republic of the Union of Myanmar.95 67 406248, 406130, 406135, 406454, 406448